183. Are We In A Bubble?

Investors,

I took a break last week to work on some personal film projects. If you want to learn more about me, I posted a new youtube video on my youtube channel.

ETH Over $3k & Bitcoin Resting

Bitcoin has recovered nicely since the bear market of 2021 ;) I hope you all survived. If we zoom out, we notice bitcoin taking a breather in the middle of the range. Once ETH and other altcoins shift back to BTC, we should see some further continuation to $70,000+

This is a great chart to look at to realize how bitcoin could get to some of the $100k - $300k price targets that have been discussed.

Ethereum, BNB, SOL, and altcoins have stolen the show in April leaving bitcoin to slowly grind up to ~ $57,000.

This will happen in bull markets as bitcoin dominance drops and ETH/BTC pair goes up. Long-term this secular rotation flows back into bitcoin. This chart shows ETH crushing bitcoin in April. Long-term (5 years), bitcoin wins.

I hold no ETH or DeFi layer 2 projects as I’m taking a longer-term view with little trading (I’d rather use leverage on bitcoin). If you can trade the /BTC pairs and stack more sats, go for it. I hope everyone is making money!

Sovryn Experiment

The only token I have thrown some money at is the Bitcoin DEFI project Sovryn ($SOV). I wrote about it here. The project currently has greater than $40 million in TVL (Total Value locked).

I bought around $5,000 worth around 70,000 sats.

This is something I plan on holding onto for the short/medium term as an experiment. I will continue to update you.

Are We In A Bubble?

Bubble is the most over-used word in finance today. Many, including me at times, have screamed that the market is over-heated, stocks are at all-time highs, and everything looks primed for a correction. P/E ratios on equities are a perfect example.

Yet is everything really over-priced? If you change the denominator on how everything is priced, you will find the stock market is pretty fairly priced. We are not at all in a bubble, the Fed Balance sheet has just expanded so much.

Before showing those charts, bitcoin has crushed every asset class.

Absolutely embarrassing the S&P 500.

Absolutely embarrassing the Nasdaq.

B***h slapping gold.

Uppercutting the real estate market.

Bitcoin is known as a black hole for a reason. It is sucking all monetary energy into it. Bitcoin, not surprisingly, has also been the only asset to keep up and save you from the balance sheet expansion I talked about before.

The traditional markets don’t actually keep up. The S&P 500, gold, real-estate, are all down and sideways since 2008.

The market hasn’t fully recovered since 2008, we just printed so much money it just looks like it. If we price the S&P 500 in gold, it’s fairly valued.

Here we see again, the S&P in line with the monetary expansion.

AGAIN! BITCOIN IS THE ONLY ASSET TO KEEP YOUR PURCHASING POWER.

All charts are taken from Raoul Pal’s recent video.

EVERYONE IS EXCITED THEY GOT $1,400 IN STIMULUS BUT THE HOME THEY WANTED WENT UP $400,000 AND THE EQUITY THEY WANTED TO BUY WENT UP 89% AND THE BITCOIN THEY WANTED TO BUY 3X.

I spell this out in all caps because of how urgent this scenario is. If you are a millennial, what the FED and boomers have done to you is f*****g criminal. Put you in school debt, gave you shitty wages, debased the currency, and priced you out of the market.

You can get a $300k student loan but not a $10,000 business loan.

The only way out is bitcoin. A big middle finger to their debt and the disgusting, unequal system they created over the past 50 years.

Charlie Munger and Warren Buffet just called bitcoin disgusting. Here is some hard news, these two benefited from this monetary expansion and barely beat the S&P 500. I grew up looking up to them, spending years reading their strategies, and I got rich, financially free, doing the exact opposite.

THINK DIFFERENT.

-Molesy

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As a reminder, this is not financial advice. Do your own research. 

Nothing in this newsletter constitutes investment, accounting, tax, or legal advice or is a recommendation that you purchase, sell or hold any security or other investment or that you pursue any investment style or strategy.

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